Multi Crore MCMV Project – a Boon to Goa’s Economy

Defence Ministry’s recent nod for Rs. 32000 Crore Project to manufacture 12 Mine Counter Measure Vessels (MCMV) indigenously, by Goa Shipyard Ltd. has set the ball rolling for Goa’s rapid industrial growth. The decision of Defence Acquisition Council (DAC) on 28 Feb 2015, chaired by Hon’ble Raksha Mantri Shri Manohar Parrikar, is expected to provide a major boost to the Goan economy with GSL contemplating to outsource / subcontract many allied works of the project to local Goan companies, thus helping in spurring the shipbuilding industry in the state. This will further increase avenues for local employement.

RAdm Shekhar Mital, NM, IN (Retd), CMD GSL said “The project is of great significance, as it will bring substantial part of the project fund to Goa’s economy and will help in making Goa a big ‘defence manufacturing cluster’ for supply of various materials, sub-assemblies and services required in construction of these special purpose vessels”. RAdm Mital added that allocation of this big ticket project to GSL, is validation of excellent industrial climate, availability of qualified skill set and advanced infrastructure in the State of Goa and is victory of the people of Goa and its leadership.

It is noteworthy that GSL has already invested about Rs. 500 Cr in massive infrastructure upgradation for MCMV project over last five years and further Rs 700 Cr will be invested over next three years. CMD GSL said “This decision has shown the resolve of Hon’ble Raksha Mantri Shri Manohar Parrikar to provide much needed hardware and assets to the defence forces, by resolving long pending requirement of Indian Navy for MCMV vessels, in favour of State of Goa. The decision of the Government to make all 12 vessels within the country, at Goa has also bolstered ‘Make in India’ Policy of present Government”.

MCMV vessels are highly sophisticated vessels for detection of moored or drifting underwater mines, which can be threat to Commercial or Naval vessels traffic within Indian or near enemy territory. With the order of this magnitude, GSL will have unique distinction of construction of steel, Aluminum, GRP and other composites vessels. GSL is likely to tie up for Transfer of Technology for design and construction of these totally Non magnetic and explosion proof vessels, as very few countries in the world have such capabilities.

Significantly, GSL has been a vital part of the Goan industrial landscape, integrating seamlessly into the community, generating employment and business opportunities for the local populace. The Company’s operations have played a significant role in providing the necessary impetus required for Goa’s industrial growth. It has encouraged the growth of ancillary units and vendor networks, which will further strengthen with this new mega project.